An employer has the option of paying for expenses and benefits for their employees, such as providing a company car and paying for the mileage travelled, or medical insurance and childcare; these are only examples and are not the only expenses an employer can contribute to. Any payments on benefits and expenses will have to be declared to HMRC and Class 1A National Insurance (NI) will need to be paid.There are two ways the expenses can be reported to HMRC, either by using a P11D at the end of the tax year, or by using the PAYE scheme. Some expenses and benefits will have their own rules and information required, such as company cars being available for employees or paying off loans to employees, so it is ideal to read up on any kind of expenses paid for and to ensure rules and guidelines are being met.A P11D would be a collective of all the expenses and benefits paid to an employee within a tax year, so HMRC would only see the total amount paid for that employee and for what type of expense. P11Ds are required to be submitted by the 6th July following the tax year end so employers have 3 months to prepare the forms. Any Class 1A should reach by the 22nd of that same July although HMRC advises that any posted monies or cheques should reach their offices by the 19th of that July. There are two pages to the P11D and not every employer will need to fill in every box, only those that are relevant to its employees.
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